Quick Answer
Once a seller accepts your offer, that offer becomes the purchase agreement, the master contract everyone follows through closing. In Central Indiana it's usually a MIBOR-standard form your agent prepares, covering price, contingencies, and deadlines. Every later document, from the earnest money receipt to the closing paperwork, traces back to what this contract says.
- What it sets
- Price, terms, deadlines, contingencies
- Who prepares it
- Your agent, on a MIBOR-standard form
- When it's binding
- Once both parties sign
- Can it change
- Yes, through a written amendment or counteroffer
What a Purchase Agreement Covers
A purchase agreement lays out far more than price. It sets the earnest money amount, the financing and inspection timelines, what personal property stays with the home, the target closing date, and every contingency either side is relying on.
Because it's a legally binding contract once signed, any change after that point, a repair credit, a moved closing date, an added contingency, has to go through a written amendment or counteroffer, not a verbal agreement.
How It Comes Together
The process typically starts with a buyer's written offer. If the seller doesn't accept it outright, they can counter one or more terms, and the two sides negotiate until everyone signs the same version. That signed document is the purchase agreement.
From there, the clock starts on contingency deadlines like the inspection period and loan approval, all tracked against the closing date named in the contract.
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Frequently Asked Questions — Purchase agreement
Is a purchase agreement the same as an offer?
An offer becomes the purchase agreement once the seller accepts it and both parties sign; before that, it's just a proposal.
Can a purchase agreement be canceled?
Yes, but usually only through a contingency that lets a buyer exit, or by mutual written agreement between both parties.
Do I need a lawyer to review it?
Indiana doesn't require one, and your agent handles the standard MIBOR contract, but you're always free to have an attorney review it.
What happens if someone breaks the agreement?
Remedies vary by what the contract allows, from keeping or returning earnest money to, in some cases, legal action; your agent can walk you through your options.